(1) This regulation applies to an exemption-holder if the chief executive proposes, on the chief executive's own initiative, to do any of the following (the proposed action ):
(a) cancel the exemption;
(b) amend the exemption to impose a condition;
(c) amend or revoke a condition included in the exemption by the chief executive.
(2) The chief executive must give the exemption-holder a written notice stating—
(a) the proposed action; and
(b) if the proposed action is to cancel the exemption—any action that the exemption-holder may take to avoid the cancellation of the exemption; and
(c) if the proposed action is to impose a condition—the proposed condition; and
(d) if the proposed action is to amend a condition—the condition as proposed to be amended; and
(e) an explanation for the proposed action; and
(f) that the exemption-holder may, within 14 days after the day the exemption-holder receives the notice, give a written response to the chief executive about the notice.
(3) In deciding whether to take the proposed action, the chief executive must consider any response given to the chief executive in accordance with the notice.
(4) If the chief executive is satisfied that a reasonable ground exists for taking the proposed action, the chief executive may take the proposed action.
(5) The chief executive must give the exemption-holder written notice of the chief executive's decision.
(6) If the chief executive decides to take the proposed action, the chief executive's decision takes effect 14 days after the day when notice of the decision is given to the exemption-holder or, if the notice states a later date of effect, that date.
(7) If the exemption is amended, the chief executive must, as soon as practicable after the exemption has been returned to the chief executive, amend the exemption or give the exemption-holder a replacement exemption showing the amendment.